USG posts 2Q profit

Chicago-based USG Corp. on Tuesday said earnings improved in the second quarter, partly due to higher prices and more shipments of gypsum wallboard, one of its more popular building products.

USG, which makes wallboard and other building products, reported second-quarter earnings of $48 million, or $1.11 a share, compared with a loss of $13 million, or 29 cents, a year earlier. Sales rose 9.8%, to $885 million from $806 million.

"Our business continued to perform well in an unsettled construction market by focusing on those factors we can manage, such as our strong customer relationships, our costs and our continued growth," USG Chairman, President and CEO William C. Foote said in a statement.

USG filed Chapter 11 last summer in the face of mounting asbestos lawsuit liabilities, and continues to struggle with legal and financial repercussions. At the company's annual shareholder meeting in May, Mr. Foote warned investors that USG could be mired in bankruptcy through next year as it tries to hammer out how much it owes asbestos litigants, creditors and other claimants (Crain's, May 12).

On Tuesday Mr. Foote said the company continues to resolve the asbestos issues, but that there is much more to do before the reorganization is complete. In the meantime, USG will work to grow and improve business, he said.

Shares of USG were up 11% Tuesday afternoon, trading at $5.65 -- well below the 52-week high of $9.13 reached in January, but above a 52-week low of $3.60 hit last October.